Purplebricks says it will have a marketing budget of AUS$17.2m - that's over £9.9m - to spend on marketing for its new Australian hybrid agency service.
The service has started this week in Melbourne and south east Queensland with some 50 local property experts, emulating the approach taken in Britain.
The agency’s chief executive, Michael Bruce, has told the Australian Financial Review that the same drivers that have made it successful in Britain will fuel what he claims will be "comparable achievements" in the market down under.
"Australians are infatuated with real estate ... For us, it's great because it means they will embrace our model as they have done in the UK ... We grew to 300 local property experts in the UK in less than two years; it could be a lot quicker in Australia” Bruce says.
A press release issued by the estate agency last night revealed that it will charge a flat fee of AUS$4,500, which is the equivalent of around £2,600. This will cover photography, marketing and advertising on platforms Domain.com.au and RealEstate.com.au - the big two portals in Australia - as well as the Purplebricks Australia website.
Given the role of auctions in the Australian property market, Purplebricks is also offering vendors an additional auction facility for a top-up fee of £480 which includes an auctioneer and all viewings attended by a local property expert.
Purplebricks says Australia represents a £3.3 billion real estate market and the new flat fee will be competitive in a landscaoe where sellers are currently charged an average of 2.2 per cent in agency commission and additional marketing costs.
Following its launch approach in the UK, Purplebricks will initially launch in Melbourne and Brisbane and then roll out to Sydney, Perth and Adelaide later this year.
The Australian version of Purplebricks is to be fronted by local chief executive Ryan Dinsdale, a marketeer who has worked for Virgin Money Australia amongst other companies.
You can read the latest Australian Financial Review piece on the agency here.
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Create a UK model that burns heavy funds. The VCs might open in nearby, France, Spain, Germany.
No make it Australia where not too many will lnow whats happening in the UK
Aussies will not pay $4,500/£2,600 upfront for a promise to sell their house.
It's £1,158 in London, Why more than double in OZ? Average agency commission in OZ (according to Purplepricks) is 2.2%, are they assuming 1% for London? Watch them quietly withdraw from the OZ market when they have blown their £10m on advertisisng and setting up costs. Say 6-9months?
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